PQ$8.$ Effect of Doubtful Accounts on Net Income $($Obj$.5).$

During its first year of operations, Mack's Plumbing Supply Co$.$ had sales of $$6,740,000,$ wrote off $$48,600$ of accounts as uncollectible using the direct write$-$off method, and reported net income of $$712,500.$

Required:

Determine what the net income would have been if the allowance method had been used and the company estimated that $1\%$ of sales would be uncollectible.

Instructions $($PQs$)$:

FORMAT: Must submit using an Excel worksheet. Dollar signs, commas, single lines, and double lines must be used when required. Note: Using any other format than'Excel will receive a $10-$point deduction.

COMPUTATIONS: All required computations must be performed using Note: Not performing all required computations using excel will receive a $5-$point deduction.